WHAT IS CREDIT CHECKING?
Credit checks are a form of assessing a person’s or business’s ability to repay credit. When you offer credit, be it for goods, services or as part of a continuing contract such as a rental agreement, it is beneficial to know what risk you are taking as the creditor.
Credit checking potential debtors ensures you are fulfilling your duty of care to both parties, conducting due diligence. This protects yourself by lowering chances of non payment. If non payment then becomes an issue, you will be fully informed as to the debtor’s ability to pay, either in full or in instalments.